PITTSBURGH, PA- In a visit to NeighborWorks in Pittsburgh today, U.S. Senator Bob Casey (D-PA) announced a $180 million appropriation for subprime mortgage counseling around the country to help families avoid foreclosure and stay in their homes. Senator Casey also announced a drive to educate non-profits in Pennsylvania about the availability of and the need to apply for these funds.
“The mortgage crisis is threatening the American Dream for too many families and hurting our economy,” said Senator Casey. “This mortgage counseling assistance will help keep families in their homes and help to stabilize our neighborhoods and economy.”
The $180 million dollars secured by Senator Casey, Senator Chuck Schumer (D-NY) and Senator Sherrod Brown (D-OH) was signed into law in December as part of the Consolidated Appropriations bill. The national NeighborWorks America is responsible for distributing the $180 million in funds to non-profits throughout the country.
To ensure that non-profits are aware of the available funds and that they submit their application prior to the deadlines, Senator Casey is sending letters to eligible organizations in Pennsylvania. A sample letter is attached.
These funds will be used by non-profit foreclosure prevention programs to provide counseling to those at risk of losing their homes. With more homeowners hit by the subprime crisis, demand for counseling has increased dramatically. Non-profits are in need of more funds and resources to provide counseling to those in need.
An estimated two million families are at risk of losing their homes to foreclosure over the next two years as their subprime loans reset to higher, unaffordable rates.
Counseling programs have a demonstrated track record of helping homeowners navigate the complicated process of contacting lenders, banks and legal services to modify their mortgage loans and ultimately save their homes from foreclosure.
Senator Casey has been at the forefront of the congressional response to the subprime mortgage crisis. In addition to the $180 million secured by Senator Casey, Senator Schumer and Senator Brown, the trio also introduced the first major legislation to deal with the crisis. The Borrower’s Protection Act will provide funds for foreclosure prevention and crack down on bad actors in the mortgage industry and regulate mortgage brokers.
Senator Casey is also a cosponsor of the Homeownership Preservation and Protection Act introduced by Banking Committee Chairman Senator Chris Dodd. This legislation would help put an end to abusive practices and would provide stronger enforcement to ensure these new protections are followed.
NeighborWorks is a national nonprofit organization that seeks to strengthen communities by promoting affordable housing home ownership.
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Sample Letter:
To Whom It May Concern:
As I am sure you are aware, Congress passed a consolidated appropriations bill at the end of last year that included $180 million in funding for foreclosure prevention for Fiscal Year 2008. I am writing to encourage your organization as a Department of Housing and Urban Development approved Housing Counseling Intermediary to apply to NeighborWorks for grant funding through this appropriation. I am optimistic that Pennsylvania homeowners can benefit from this assistance and your counseling as they struggle to keep their homes.
At least $167.8 million of these federal funds are to be distributed by NeighborWorks to non-profit foreclosure prevention programs to provide counseling to those at risk of losing their homes. Beginning one week from today, on January 25, 2008, applications will be available online through GrantWorks. The deadline for applications is Friday, February 8, 2008 at 5:00 p.m. I know that you have worked tirelessly for many years to assist homeowners in need, and I urge you to broaden and expand your efforts through available federal assistance. If your organization is awarded a grant, initial disbursements will be available on March 1, 2008 for you to reach out to homeowners and save many of them from foreclosure and financial crisis. Individual homeowners facing foreclosure are not eligible for grant funds, so your applications for assistance are critical and must be aggressively pursued.
Foreclosure is not only a problem for individual families. It affects entire neighborhoods, leading to depressed property values and increased crime as the sense of community dissolves. I applaud your success in foreclosure prevention to date and thank you for your efforts on behalf of the communities in my home state. Please contact my office if I can be of any assistance as you continue to play a crucial role in helping working families in Pennsylvania.
